LTFRB suspends Uber’s accreditation, operations for one month

MANILA, Philippines (Updated 7:50 p.m.) — The Land Transportation Franchise and Regulatory Board on Monday announced suspension of the accreditation of ridesharing company Uber for one month.

The LTFRB also ordered the company to cease and desist operations of its online booking application, which allows users to book rides on their smartphones.

The board said the order is effective immediately.

“In an order dated 14 August 2017, the board meted out the penalty of one month suspension on the accreditation of Uber System, Inc. and was ordered to cease and desist its operation of their online booking application during the period of suspension,” LTFRB said in its advisory.

“The board strongly recommended to respondent Uber to extend financial assistance to its affected peer-operators during the period of suspension as an expression of good faith as their accredited peer-operators would not have suffered current predicament were it not for the predatory actions of respondent Uber,” it added.

LTFRB said the following agencies were given copies of the order for enforcement: Metro Manila Development Authority, Philippine National Police – Highway Patrol Group, and Land Transportation Office.

READ: LTFRB orders Grab, Uber: Get rid of colorum drivers

In July, the LTFRB directed ridesharing companies Uber and Grab to stop the operations of transport network vehicle services drivers who do not have the required certificates of public convenience (CPCs) or provisional authorities that grant them franchises to operate.

The board said the order would become executory on July 26.

However, this directive earned negative criticims from both drivers and the riding public.

Both Uber and Grab earlier admitted they continued accepting drivers into their platforms despite the LTFRB’s directives.